According to one study, one in eight drivers were uninsured.
It’s especially important to get insurance if you’re going to be hauling heavy freight. In that case, you’ll need hot shot insurance.
But what is hot shot insurance? Keep reading to find out all you need to know!
What is Hot Shot Insurance?
Hot shot trucking is when trucks haul freight with a heavy-duty pickup truck. They use this instead of using a standard semi that you might see while driving on the interstate.
Because of this, the cargo shipment can be expedited. For example, if a power company has to ship parts to avoid a shutdown, this can help expedite the process.
However, it’s very competitive. If you’re going to do this, you’ll need to have the right insurance and make sure that you meet all the requirements.
When you have hot shot truck insurance, you’ll be covered by things like protection against property damage. You’ll also be covered if you have damage that occurs to the equipment that you’re hauling as well.
If you’re involved in an accident, then you’ll also be covered so that you can get back on the road and run your company. If there are medical bills due to the accident, you’ll also be covered for that.
You’ll also be covered in the event of a fire, theft, vandalism, or other physical causes that damage the vehicles or the equipment.
Every hot shot insurance coverage will be different, and each business will have its own set of coverage. Make sure that you shop around to find the best coverage and cost for you.
In terms of finding insurance requirements that you’ll need to meet, you should check what the laws and rules are in your state and country. You’ll also have to see what insurance you need for shippers and brokers.
Normally, you’ll be required to have cargo coverage that will protect the freight that is hired. Most brokers will need a minimum of $100,000 in cargo insurance.
If you’re going to be sending cargo across state lines, you’ll also need to have an MC number. This will also limit how much coverage you can get and how much coverage you’ll need.
You may even need a minimum of $1 million dollars in liability coverage. This will cover you in case anyone gets hurt or injured during the transition process. You should make sure that you work with an insurance broker to get enough coverage that you need.
Is It Worth It?
Aside from the fact that it’s legally required to have insurance in some states, it is definitely worth it to have this insurance to protect your business.
If you find that you need to expedite cargo often, then you’ll definitely want to get a hot shot policy. This insurance will then give you the freedom to have flexibility in your business in case you need it.
While many people might not want to add this policy for costs, it could help decrease your costs later on. This will help cover any liability costs that you might have to deal with.
If you’re still not sure if it’s worth it, talk to an insurance broker and they’ll be able to provide more information for you.
Doing hot shot driving isn’t always for everyone, but there are a few advantages to adding this to your business.
It’s great for people who are self-employed and running their own business. It’ll help you avoid outsourcing shipping to another cargo company, especially when there are delays in the supply chain.
You’ll be able to haul whatever you want and do it whenever you want. Because of this, you’ll have more control over your schedule and can create more structure.
You’ll also have a good chance of making extra money through your business.
The hot shot insurance cost will vary depending on a few main factors. These factors can be dependent on different insurance companies, but they might also depend on your location.
For example, if you’re looking for insurance in New York, it’ll cost more than it would in a place like Kansas.
It’ll also depend on what kind of deductible you have on your insurance. If you have a high deductible, you’ll lower the premium each month. But if you have an accident, you may have to pay more if you do need to use the insurance.
You’ll also need to factor in your own personal credit score.
It’ll also depend on what kind of coverage you want to use for your truck. If you have more expensive coverage, then you’ll have to pay more each month for the insurance.
The type of truck that you’re driving is another factor. If you’re driving a newer truck that’s safer, you may have a lower premium each month. If you have an older truck, it might cost more since the truck may not be as safer or could get more damaged in an accident.
The best way to determine the cost is to contact an insurance company and ask for a personalized quote.
Learn More About Hot Shot Insurance
These are only a few things to know about hot shot insurance, but there are many more things to keep in mind.
We know that running a business can be overwhelming, but we’re here to help you out.
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